Hartford Plummets on Loss, Capital Concerns

Considering that the S&P was down 19.78% from Oct. 1 to the market close yesterday, a 30% estimated decline for the remainder of the year may be too optimistic, demonstrating the difficulty in any kind of market estimates right now.

When pressed about whether or not there were plans to raise further capital, Chairman and CEO Ramani Ayer indicated that the company had no specific plans to raise capital but would certainly consider it if the market fell even further than the 30% they had estimated.

It is generally considered that a risk-based capital ratio in the 350% range is needed to maintain an AA rating. So concerns about the company's 300% projection derive from the fact that the company could be downgraded based on year-end results, which could set off a series of triggers deteriorating its group business.

Hartford Life Insurance Co., Hartford Life & Annuity Insurance Co. and Hartford Life & Accident Insurance Co. hold financial strength rating from TheStreet.com Ratings of B (Good) , B+ (Good) and B (Good), respectively. Combined, the three insurers make up roughly $250 billion of the holding company's assets. Hartford has a total of 23 domestic insurance subsidiaries.

The company lowered its guidance to a range of $4.30 to $4.50. It was $9.20 - $9.50 as of second quarter.

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